Backpack Exchange, a global centralized cryptocurrency exchange platform, announced the successful acquisition of the European arm of the collapsed crypto exchange, FTX. This acquisition has come following approval by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
Co-founded by Solana developer Armani Ferrante and former Alameda Research and FTX employees, Backpack Exchange aims to expand and offer premium trading services across Europe, making the acquisition a major milestone for the centralized exchange platform.
Exchange Acquisition Details and Expansion Plans
Following the acquisition, Backpack’s new EU arm would offer a range of crypto derivatives across the European Union, including perpetual futures, a market without regulated crypto derivatives, as unlicensed offshore exchanges have been forced to shut down operations in the EU.
According to Armani Ferrante, CEO of Backpack Exchange, they will see the effective distribution of previously court-approved FTX bankruptcy claims to FTX EU customers.
“With this acquisition, we are also responsible for distributing FTX bankruptcy claims to FTX EU customers,” Ferrante said. “We will do our best to quickly and safely return the customer’s funds to restore trust”.
Sources indicate that this acquisition comes a few months after CySEC extended FTX EU’s six-month suspension. Although Backpack is prohibited from offering services till May 30, 2025, the regulatory body permitted FTX EU to complete transactions and return customers’ funds.
History Behind FTX’s Infamous Collapse
Founded by crypto mogul Sam Bankman-Fried, the FTX collapse happened in November 2022. Following an intensive investigation, the report stated that Alameda Research, FTX’s sister firm, held a huge portion of its assets in the FTT token, the exchange token of the FTX platform.
There were also reported inconsistencies in Alameda’s holdings. This included a block in customer withdrawals, an $8 billion shortfall in accounts, and an abrupt filing of bankruptcy. SBF was convicted and sentenced to 25 years in prison for misappropriating funds for $8 billion in customer deposits.
SOL NFT Series Mad Lads Floor Price Surges After Acquisition
Following the acquisition, the floor price of the Backpack-owned Solana NFT project, Mad Lads, marked a 24-hour surge of 22.22%. This abrupt rise comes from the acquisition finalization of the bankrupt FTX EU business unit for $32 million.
Confidence in the NFT project rose, with the floor price surpassing $18,000. As Backpack Exchange heads into the new year, this development signifies renewed optimism in Solana-based assets across Europe.
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